Saad Ullah
NIO just did something it hasn't managed in a full year - break cleanly above $7. After months of getting beaten down by EV sector headwinds and broader market pessimism, this breakout has people talking again.
What the Charts Are Saying
The Chinese EV maker closed at $7.07, as noted by Antonio Costa, marking its highest level since late 2023.
The move past $7 isn't just about price - it's backed by serious volume. Over 82 million shares changed hands, way above the usual trading activity. That's the kind of institutional money that suggests this isn't just retail FOMO. The RSI hit 67, showing bullish momentum while staying just shy of overbought territory. Most importantly, NIO turned that stubborn $6.80-$7.00 resistance zone into what should now be support.
Why NIO Is Finally Moving
The EV space is getting some love again, especially Chinese names that got oversold. Beijing keeps dropping hints about more subsidies and support for electric vehicle adoption, which always gets investors excited. Plus, after trading at basement levels for months, value hunters are starting to circle. Sometimes the best setups come from stocks that everyone forgot about.
The next big test comes at $7.70, and if momentum holds, $8.50 is in play. But here's the thing - if NIO can't hold $6.50 on any pullback, this whole breakout story falls apart fast. Right now though, with volume supporting the move and sentiment shifting, the path of least resistance looks higher. The question isn't whether NIO can rally more - it's whether the broader EV recovery has legs.
Saad Ullah
